Goal: A Financial Safety Net
The relatively narrow role the BIS plays today does not reflect its ambitions or historical role.
A "well-designed financial safety net, supported by strong prudential regulation and supervision, effective laws that are enforced, and sound accounting and disclosure regimes," are among the Bank's goals. In fact they have been in its mandate since its founding in 1930 as a means to enforce the Treaty of Versailles.
The BIS has historically had less power to enforce this "safety net" than it deems necessary. Recent head Andrew Crockett has bemoaned its inability to "hardwire the credit culture," despite many specific attempts to address specific concerns such as the growth of Offshore Financial Centres (OFCs), Highly Leveraged Institutions (HLIs), Large and Complex Financial Institutions (LCFIs), deposit insurance and especially the spread of money laundering and accounting scandals.
Read more about this topic: Bank For International Settlements
Famous quotes containing the words financial, safety and/or net:
“... aside from the financial aspect, [there] is more: the life of my work. I feel that is all I came into the world for, and have failed dismally if it is not a success.”
—Mary E. Wilkins Freeman (1852–1930)
“To emancipate [the slaves] entirely throughout the Union cannot, I conceive, be thought of, consistently with the safety of the country.”
—Frances Trollope (1780–1863)
“You have been trapped in the inescapable net of ruin by your own want of sense.”
—Aeschylus (525–456 B.C.)